05/17/2026
Ninth Circuit: Severability Clause Does Not Defeat Delegation of Arbitration Validity Questions
When an employee challenges an arbitration agreement as unconscionable, who decides that challenge, a judge or an arbitrator? In Sandler v. Modernizing Medicine, Inc., the Ninth Circuit answered that question by enforcing the parties’ delegation clause and sending the dispute to arbitration.
The decision is important for employers using arbitration agreements because it rejects a common argument made against delegation clauses: that a severability clause referring to a “court” creates ambiguity about whether an arbitrator may decide the validity of the arbitration agreement. The Ninth Circuit held it does not.
The Employment Agreement Sent Disputes to Arbitration
Kara Sandler worked for Modernizing Medicine, Inc., also called ModMed.
When an employee challenges an arbitration agreement as unconscionable, who decides that challenge, a judge or an arbitrator? In Sandler v. Modernizing Medicine, Inc., the Ninth Circuit answered that question by enforcing the parties’ delegation clause and sending the dispute to arbitration.